Asian markets have rebounded strongly on better-than-expected US jobs data and traders have taken a more positive view of the European Central Bank's position on the eurozone debt crisis.
The single currency hit its highest level against the dollar in a month as concerns over the eurozone and the US eased, while hopes grew that Greece would meet its obligations to qualify for another tranche of rescue cash.
Tokyo rose 2.0 per cent, or 171.18 points, to 8,726.29 on Monday. Seoul climbed 2.01 per cent, or 37.20 points, to 1,885.88 and Sydney closed 1.21 per cent, or 51.1 points, higher at 4,272.6.
Hong Kong jumped 1.69 per cent, or 332.54 points, to 19,998.72 while Shanghai added 1.04 per cent, or 22.12 points, to close at 2,154.92.
In the US said on Friday that the economy added 163,000 jobs in July - the strongest gain since February.
Despite a 0.1 percentage point rise in the unemployment rate to 8.3 per cent the figures were welcomed by investors who took the report as a sign of resilience in the world's top economy.
The result sent Wall Street surging. The Dow jumped 1.69 per cent, the Nasdaq climbed two per cent and the S&P 500 rose 1.9 per cent.
The figures were welcome news for the markets, which had been sent tumbling on Thursday after the ECB failed to announce any concrete plans to support the euro, despite comment from its head Mario Draghi that it would do whatever was needed.
However, the initial disappointment was reversed in Europe and on Wall Street after bank officials said on Friday it could intervene and buy the bonds of struggling eurozone countries without unanimous approval.
Those comments raised hopes that a bond buying program to help struggling countries such as Spain and Italy was still possible.
The ECB "seems to be cooking up something internally", Jung Seung-jae, analyst at Mirae Asset Securities in South Korea, told Dow Jones Newswires.
"Action may come earlier than expected."
On currency markets the euro surged in early trade to a one-month high of $1.2442 as traders became more confident in higher-risk, higher-yielding assets.
The unit later eased back to $1.2350 in early European trade, compared with $1.2381 in late trade in New York on Friday.
The euro bought Y96.91 compared with Y97.30 in New York, although well up from the Y95.18 in Tokyo on Friday.
The dollar bought Y78.40, from Y78.59.
Also providing some support to markets were comments from Greece's international creditors Sunday that the country was committed to hammering out further spending cuts to secure a new batch of aid.
The so-called troika of creditors - the EU, IMF and ECB - met about the reforms Greece needs to implement to secure 31.5 billion euros ($A37 billion) in aid and stay afloat.
"We made good progress," IMF official Poul Thomsen told reporters after the meeting.
That eased concerns that Athens was not doing enough to satisfy its creditors and could be refused the cash, which would in turn be likely to lead to a default.
Oil prices eased after posting impressive gains in Friday trade in the US.
New York's main contract, West Texas Intermediate (WTI) light sweet crude for delivery in September, fell 49 cents to $US90.91 a barrel in the afternoon and Brent North Sea crude for September delivery shed 26 cents to $US108.68.
Gold was at $US1,608.40 at 1040 GMT (2040 AEST) from $US1,595.50 on Friday.
In other markets:
- Singapore advanced 0.67 per cent, or 20.49 points, to 3,071.82.
Fraser & Neave was up 0.86 per cent at Sg$8.22 after its board of directors on Friday accepted an offer by Dutch brewer Heineken to buy its 41.9 per cent stake in Asia Pacific Breweries (APB), which makes Tiger beer.
APB fell 1.31 per cent to Sg$48.85, below Heineken's offer of Sg$50 a share for the F&N stakes. DBS Bank rose one per cent to Sg$14.90.
- Taipei rose 0.95 per cent, or 68.82 points, to 7,286.33.
Hon Hai Precision was up by its 7.0 per cent daily limit at Tw$87.3 while Taiwan Semiconductor Manufacturing Co was 1.38 per cent higher at Tw$80.9.
- Manila ended flat, dipping 0.03 per cent, or 1.75 points, to 5,284.16.
Philippine Long Distance Telephone fell 1.02 per cent to 2,730 pesos while Ayala Land rose 1.34 per cent to 22.70 pesos.
- Wellington closed 0.43 per cent higher, adding 15.21 points to 3,563.20.
Telecom Corp was up 1.12 per cent to NZ$2.71, while Fletcher Building gained 1.62 per cent to NZ$6.27.
- Kuala Lumpur gained 0.27 per cent, or 4.39 points, to 1,639.43.
UMW Holdings closed 1.3 per cent higher at 9.89 ringgit and PBB Group lost 1.7 per cent to end at 14.22 ringgit.
- Jakarta rose 0.14 per cent, or 5.69 points, to 4,105.50.
Coal miner Adaro rose 4.6 per cent to 1,590 rupiah, gold and nickel miner Antam gained 2.4 per cent to 1,260 rupiah and Telkom fell 1.1 per cent to 8,850 rupiah.
- Bangkok rose 0.88 per cent, or 10.48 points, to 1,208.01.
Banpu gained 4.00 per cent to 416.00 Baht, while PTT added 1.56 per cent to 325.00 Baht.
- Mumbai gained 1.25 per cent, or 215.03 points, to 17,412.96.
Reliance Industries rose 5.71 per cent to 785.3 rupees and the country's only listed microlender, SKS Microfinance, jumped 9.54 per cent to 98.75 rupees after it said Friday its losses in the first quarter narrowed sharply.
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